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A company purchased property for a building site. The costs associated with the property were: purchase price..........................................175000 real estate commissions............................15000 legal fees........................................................800 expense of clearing

A company purchased property for a building site. The costs associated with the property were:

purchase price..........................................175000

real estate commissions............................15000

legal fees........................................................800

expense of clearing the land........................2000

expense to remove old building...................1000

What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

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